XBI(Biotech ETF) is beginning to put some distance on the 200 day moving average. The index began this week with a powerful upside gap and, with today’s 1.7% gain, XBI has extended its rally off the February lows to 11%. The XBI is headed for its first weekly close above the 200 day moving average since the end of September. A major support zone is now in place. If the XBI is in need of a pullback before the 200 day is convincingly take out we expect the $87.50(last week’s high) to $85.00 area(Nov/Dec highs) to hold up well.
At time of publication we do not have a position in XBI.